DB:IMA

Stock Analysis Report

Executive Summary

IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company that specializes in digital and film-based motion picture technologies worldwide.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has IMAX's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IMA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

IMA

-4.5%

DE Entertainment

-0.6%

DE Market


1 Year Return

-62.5%

IMA

-15.1%

DE Entertainment

-20.9%

DE Market

Return vs Industry: IMA underperformed the German Entertainment industry which returned -14.8% over the past year.

Return vs Market: IMA underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

IMAIndustryMarket
7 Day-2.5%-4.5%-0.6%
30 Day-40.5%-12.7%-16.6%
90 Day-57.8%-31.9%-26.0%
1 Year-62.5%-62.5%-14.0%-15.1%-18.6%-20.9%
3 Year-74.1%-74.1%-8.4%-12.8%-19.0%-25.8%
5 Year-77.1%-77.1%27.1%17.4%-21.1%-31.8%

Price Volatility Vs. Market

How volatile is IMAX's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is IMAX undervalued compared to its fair value and its price relative to the market?

48.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IMA (€7.8) is trading below our estimate of fair value (€14.98)

Significantly Below Fair Value: IMA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IMA is good value based on its PE Ratio (12.2x) compared to the Entertainment industry average (27.2x).

PE vs Market: IMA is good value based on its PE Ratio (12.2x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: IMA is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: IMA is good value based on its PB Ratio (1x) compared to the DE Entertainment industry average (1.1x).


Next Steps

Future Growth

How is IMAX forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMA's forecast earnings growth (2.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: IMA's earnings (2.9% per year) are forecast to grow slower than the German market (14.1% per year).

High Growth Earnings: IMA's earnings are forecast to grow, but not significantly.

Revenue vs Market: IMA's revenue (1% per year) is forecast to grow slower than the German market (3.9% per year).

High Growth Revenue: IMA's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IMA's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

How has IMAX performed over the past 5 years?

-17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMA has high quality earnings.

Growing Profit Margin: IMA's current net profit margins (11.8%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: IMA's earnings have declined by -17.5% per year over the past 5 years.

Accelerating Growth: IMA's earnings growth over the past year (105.2%) exceeds its 5-year average (-17.5% per year).

Earnings vs Industry: IMA earnings growth over the past year (105.2%) exceeded the Entertainment industry -50.4%.


Return on Equity

High ROE: IMA's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is IMAX's financial position?


Financial Position Analysis

Short Term Liabilities: IMA's short term assets ($365.2M) exceed its short term liabilities ($72.2M).

Long Term Liabilities: IMA's short term assets ($365.2M) exceed its long term liabilities ($173.7M).


Debt to Equity History and Analysis

Debt Level: IMA's debt to equity ratio (2.8%) is considered satisfactory.

Reducing Debt: IMA's debt to equity ratio has increased from 1.1% to 2.8% over the past 5 years.

Debt Coverage: IMA's debt is well covered by operating cash flow (495.8%).

Interest Coverage: IMA's interest payments on its debt are well covered by EBIT (115.7x coverage).


Balance Sheet

Inventory Level: IMA has a high level of physical assets or inventory.

Debt Coverage by Assets: IMA's debt is covered by short term assets (assets are 20x debt).


Next Steps

Dividend

What is IMAX's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IMA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IMA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IMA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IMA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IMA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Rich Gelfond (63yo)

11s

Tenure

US$6,286,123

Compensation

Mr. Richard Lewis Gelfond, also known as Rich, has been the Chief Executive Officer at IMAX Corporation since April 1, 2009. Mr. Gelfond serves as the Co-Chief Executive Officer and Co-Chairman of Clarion  ...


CEO Compensation Analysis

Compensation vs Market: Rich's total compensation ($USD6.29M) is above average for companies of similar size in the German market ($USD1.10M).

Compensation vs Earnings: Rich's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Gelfond
CEO & Director11yrsUS$6.29m0.51% $2.7m
Patrick McClymont
Executive VP & CFO3.67yrsUS$2.61m0.054% $287.2k
Robert Lister
Chief Legal Officer & Senior EVP8.25yrsUS$2.58m0.10% $540.1k
Graeme Ferguson
Co-Founderno datano datano data
Bruce Markoe
Senior Vice President of Post Productionno datano datano data
Kevin Delaney
Senior VP of Finance0.083yrno datano data
Pablo Calamera
Executive VP & CTO0.083yrno datano data
Stephen Davidson
Head of Investor Relations0.75yrno datano data
Mark Jafar
Global Head of Corporate Communications0.83yrno datano data
Denny Tu
Chief Marketing Officer & Senior VP1.17yrsno data0.0040% $20.9k

1.0yrs

Average Tenure

50yo

Average Age

Experienced Management: IMA's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Richard Gelfond
CEO & Director11yrsUS$6.29m0.51% $2.7m
Dana Settle
Independent Director4.75yrsUS$180.00k0.039% $205.9k
Michael I. MacMillan
Independent Director6.83yrsUS$180.00k0.031% $161.8k
Bradley Wechsler
Chairman of the Board11yrsUS$461.80k0.30% $1.6m
Eric Demirian
Independent Director9.58yrsUS$200.00k0.067% $352.3k
Neil Braun
Independent Director16.83yrsUS$190.00k0.063% $334.1k
Kevin Douglas
Independent Director3.5yrsUS$182.50k14.56% $77.0m
David Leebron
Lead Independent Director1.5yrsUS$200.00k0.14% $753.3k
Darren Throop
Independent Director4.83yrsUS$182.50k0.018% $96.8k

6.8yrs

Average Tenure

62yo

Average Age

Experienced Board: IMA's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IMA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IMAX Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IMAX Corporation
  • Ticker: IMA
  • Exchange: DB
  • Founded: 1967
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$570.765m
  • Listing Market Cap: US$529.042m
  • Shares outstanding: 61.18m
  • Website: https://www.imax.com

Number of Employees


Location

  • IMAX Corporation
  • 2525 Speakman Drive
  • Mississauga
  • Ontario
  • L5K 1B1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IMAXNYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 1994
IMADB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1994

Biography

IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company that specializes in digital and film-based motion picture technologies worldwide. It offers cinematic solution comprising proprietary software, theater architecture, intellectual property, and equipment. The company offers Digital Re-Mastering (DMR), a proprietary technology that digitally enhances the image resolution, visual clarity, and sound quality of motion picture films for projection on IMAX screens; IMAX premium theater systems to exhibitor customers through sales, long-term leases, and joint revenue sharing arrangements; film post-production services; and camera and other miscellaneous items rental services, as well as distributes documentary films; and owns and operates IMAX theaters. It also designs, manufactures, installs, sells, and leases IMAX theater projection system equipment; maintains IMAX theater projection system equipment in the IMAX theater network; distributes and licenses original content, virtual reality, IMAX home entertainment, and others; and sells or leases its theater systems to theme parks, private home theaters, tourist destination sites, fairs, and expositions, as well as engages in the after-market sale of projection system parts and 3D glasses. The company markets its theater systems through a direct sales force and marketing staff. It owns or otherwise has rights to trademarks and trade names, which include IMAX, IMAX Dome, IMAX 3D, IMAX 3D Dome, Experience It in IMAX, The IMAX Experience, An IMAX Experience, An IMAX 3D Experience, IMAX DMR, DMR, IMAX nXos, and Films To The Fullest. As of December 31, 2019, the company had a network of 1,624 IMAX theater systems comprising 1,529 commercial multiplexes, 14 commercial destinations, and 81 institutional facilities operating in 81 countries and territories. IMAX Corporation was founded in 1967 and is headquartered in Mississauga, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 02:55
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.